Dtex Raises $17.5 Million in Funding

PRESS RELEASE

San Jose, CA, May 07, 2020 (GLOBE NEWSWIRE) -- Dtex, a next-generation insider threat cybersecurity company, today announced funding of $17.5 million led by Northgate Capital with additional participation from existing investors Norwest Venture Partners and Four Rivers Group. On the heels of doubling revenues in 2019, this new funding will be used to expand beyond established customer verticals including banking and financial services, critical infrastructure, government and defense, into industries where Dtex has experienced recent success, such as pharmaceuticals, life sciences and manufacturing.

Dtex delivers always-on insider threat security to an entire organization, proactively illuminating dangerous activity in real-time across millions of devices to predict and uncover risky behavior, well before an incident occurs. In the past, there was a much smaller number of network ingress and egress points that needed to be secured, but today’s company perimeter has morphed into an organic, constantly fluctuating network of millions of desktops, servers, cloud services, BYOD and now thousands of remote workers. Dtex eliminates the excessive noise and false positives of legacy point solutions via its patent-pending DMAP+ Technology, a real-time correlation of telemetry, introspection and predictive modeling, able to recognize threats based on contextual behavior and patterns, while maintaining full GDPR compliance.

Over the past 12 months, 80 percent of Dtex’s Fortune 500 customers have increased their deployments to cover all endpoints, including servers, across their entire global enterprise in order to declutter their defense-in-depth legacy technology that has become increasingly ineffective in detecting and preventing insider threats. These global companies require a next-generation insider threat platform that:

“The addressable market for Dtex sits squarely in the enterprise insider threat cybersecurity sector, where the need to eliminate point solutions has already moved beyond the early adopters,” said Bahman Mahbod, President & CEO, Dtex. “Insider threat security needed a total revamp – one with a modern approach that offers comprehensive and organization-wide visibility. Dtex is providing customers with a simple and endlessly scalable platform to instrument the enterprise in real-time, with sophisticated analytics that are proven to find the needles in the haystack.”

Thorsten Claus, partner, Northgate Capital added, “Dtex has built a highly scalable platform that utilizes a cloud-first, lightweight endpoint architecture, offering clients a number of use cases including insider threat prevention and business operations intelligence. With Dtex, we have found a fast-growing, long-term, investible operation that is not just a band-aid collection of tools, which would be short-lived and replaced.”

The versatility of DMAP+ Technology has drawn Dtex into the recent spike in remote working. Throughout the COVID-19 emergency, Dtex customers have been using DMAP+ Technology to analyse home worker security and business continuity trends. This requirement has resulted in a new suite of Dtex offerings, including automated reports and trend analysis which are now delivered out-of-the-box. This, in conjunction with Dtex’s Counter-Insider Threat (C-InT) Taskforce, will support the sharp increase in demand for specialist insider threat intelligence and investigations, ensuring clients can detect and respond to insider threats proactively, flagging bad actors and accidental policy violations to prevent potential breaches for remote workers.

“We’ve been impressed by the success of the Dtex management team that has successfully scaled and exited cybersecurity companies and has now delivered enterprise-wide deployments for world-renowned blue-chip financial services, critical infrastructure and government clients,” said Justin Stebbins, partner, Northgate Capital. “Today’s cybersecurity needs are greater than ever. Threat vectors and sophistication of attacks are increasing, and information security has become a battleground of fragmented point solutions, to the dismay of security operators.”

About Dtex

Dtex Intercept is the only Next-Gen Insider Threat Platform that delivers “always-on” security to proactively illuminate dangerous activity in real-time across the entire organization, uncovering risky behavior well before an incident occurs. The solution is powered by DMAP+ Technology, a combination of lightweight forwarders & real-time correlation of unique enriched telemetry from data, machines, applications and people (DMAP) done at incredible scale.

Fortune 500 businesses, government agencies such as the US Defense Information Systems Agency and innovative enterprises such as Williams F1 & Advanced Engineering and Freshfields Bruckhaus Deringer – one of only 5 Magic Circle law firms in the world -- use Dtex to identify risky users, prevent data loss, accelerate incident response, ensure compliance and detect fraud across their entire organization. Dtex is headquartered in San Jose, CA., with international offices in the UK and Australia. For more information, please visit www.dtexsystems.com.

About Northgate

Northgate Capital, founded in 2000 by Brent Jones and Tommy Vardell, is a venture capital investment management firm. The firm and its global affiliates jointly manage $4.9 billion in assets. With offices in the San Francisco Bay Area and Mexico City, Northgate’s investment programs focus on venture capital – Fund-of-Funds and Direct – with additional programs in private equity – global small market Fund-of-Funds, Mexico growth equity and mezzanine finance. (www.northgate.com)